Paopoom Rojanasakul, Deputy Minister of Finance, stated that his ministry is set to announce the expansion of the tax base instead of increasing tax rates, along with initiatives to encourage long-term savings. He said that the budgets for the second half of 2024, 2025, and the Digital Wallet Stipend policy are expected to boost Thailand’s GDP.
Paopoom emphasized the coordination between the Bank of Thailand (BoT) and the Ministry of Finance to manage the economy, highlighting the need for frequent and close consultations between the two entities.
Positive economic factors for the second half of the year include significant funding from the 2024 and 2025 budgets, as well as a 500 billion baht Digital Wallet Stipend, which is anticipated to circulate within the system and stimulate the economy, potentially exceeding the GDP growth target of 2.4% in 2024. The government has assured that the funding sources for the Digital Wallet project are well-prepared and clear.
Deputy Commerce Minister Paopoom revealed that the government is exploring new measures to incentivize long-term savings due to the limitations of existing funds such as the Social Security Fund and the Provident Fund. The Ministry of Finance will propose to the Cabinet the provision of loans to three target industries: food, comprehensive healthcare, and tourism.
To enhance capital access, the government will allow more small businesses, SMEs, and entrepreneurs to access funding by issuing an unlimited number of licenses for Virtual Banks. Additionally, conditions for establishing Pico Finance in rural areas will be adjusted to increase access to funding and reduce informal lending issues.
Paopoom further stated that during an economic slowdown, it is unsuitable to raise tax rates. Instead, the tax base will be expanded by incorporating businesses and individuals who meet the income criteria into the system to increase state revenue without significantly impacting the public’s well-being. (NNT)
